The dog first disappeared from their home in 2012. She was found in Carmel Highlands and returned to the Daltons.

She disappeared again in 2013 and hasn't been found.

The Dalton's neighbor, Gregory Perkins, is charged with two counts of felony grand theft of an animal and two felony counts of animal cruelty.

"Ultimately we gathered enough evidence through witnesses and statements to feel comfortable enough sending a report to the District Attorney's Office, said Leslie Sonne, of the Monterey Police Department.

Dalton said she thinks Perkins took her dog because he claimed Candy Cane was barking a lot.

"The kids are fearful to walk down the street, afraid they're going to see (Perkins). They're scared of him," Dalton said.

Dalton said her children built a shrine to their dog inside their home and light a candle each week praying the dog will be found.

Candy Cane had a microchip implanted in her so the family is hopeful she will be identified and returned home.

KSBW reached out to Perkins' attorney but he was not willing to comment on the case.